SEEK (SEK)

Citigroup has downgraded its recommendation for
SEEK
from “hold" to “sell" as the volume of online job advertisements dropped in July to 124,000, the fifth consecutive month of decline. Analyst Justin Diddams said he liked the SEEK business: it had market-leading assets, earnings growth and robust cash generation. However, Mr Diddams said risks included lower domestic and international employment volumes and a forecast for only a modest recovery in employment volumes in coming years. On this basis, consensus earnings forecasts were too high and the shares were already priced for a robust employment recovery and upside from International assets.